KBAB vs. TSMX

Last updated Jun 23, 2026

KBAB (KraneShares 2x Long BABA Daily ETF) and TSMX (Direxion Daily TSM Bull 2X Shares) are both Leveraged Equities funds. Both are actively managed. Over the past year, KBAB returned -33.72% vs 295.18% for TSMX. At a 0.34 correlation, their price movements are largely independent. KBAB charges 1.00%/yr vs 1.05%/yr for TSMX.

Performance

KBAB vs. TSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares 2x Long BABA Daily ETF (KBAB) and Direxion Daily TSM Bull 2X Shares (TSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KBAB achieves a -54.33% return, which is significantly lower than TSMX's 108.50% return.

KBAB

• 1D: -4.58%
• 1M: -34.77%
• YTD: -54.33%
• 6M: -57.11%
• 1Y: -33.72%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TSMX

• 1D: 2.28%
• 1M: 30.54%
• YTD: 108.50%
• 6M: 123.44%
• 1Y: 295.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

KBAB vs. TSMX - Yearly Performance Comparison

	2026 (YTD)	2025
KBAB KraneShares 2x Long BABA Daily ETF	-54.33%	-6.56%
TSMX Direxion Daily TSM Bull 2X Shares	108.50%	163.43%

Correlation

The correlation between KBAB and TSMX is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (All Time) Calculated using the full available price history since Mar 12, 2025	0.34

KBAB vs. TSMX - Sectors Allocation Comparison

Sectors	KBAB	TSMX
Consumer Cyclical	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

KBAB vs. TSMX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KBAB

KBAB Risk / Return Rank: 6
KBAB Sharpe Ratio Rank: 6
KBAB Sortino Ratio Rank: 7
KBAB Omega Ratio Rank: 7
KBAB Calmar Ratio Rank: 5
KBAB Martin Ratio Rank: 5

TSMX

TSMX Risk / Return Rank: 90
TSMX Sharpe Ratio Rank: 96
TSMX Sortino Ratio Rank: 84
TSMX Omega Ratio Rank: 78
TSMX Calmar Ratio Rank: 96
TSMX Martin Ratio Rank: 95

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KBAB vs. TSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares 2x Long BABA Daily ETF (KBAB) and Direxion Daily TSM Bull 2X Shares (TSMX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	KBAB	TSMX	Difference
Sharpe ratio: Return per unit of total volatility	-0.39	3.95	-4.33
Sortino ratio: Return per unit of downside risk	-0.07	3.59	-3.66
Omega ratio: Gain probability vs. loss probability	0.99	1.44	-0.45
Calmar ratio: Return relative to maximum drawdown	-0.46	8.51	-8.97
Martin ratio: Return relative to average drawdown	-0.86	27.31	-28.17

KBAB vs. TSMX - Sharpe Ratio Comparison

The current KBAB Sharpe Ratio is -0.39, which is lower than the TSMX Sharpe Ratio of 3.95. The chart below compares the historical Sharpe Ratios of KBAB and TSMX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

KBAB vs. TSMX - Drawdown Comparison

The maximum KBAB drawdown since its inception was -74.28%, which is greater than TSMX's maximum drawdown of -63.80%. Use the drawdown chart below to compare losses from any high point for KBAB and TSMX.

Drawdown Indicators

	KBAB	TSMX	Difference
Max Drawdown Largest peak-to-trough decline	-74.28%	-63.80%	-10.48%
Max Drawdown (1Y) Largest decline over 1 year	-74.28%	-34.93%	-39.35%
Current Drawdown Current decline from peak	-74.28%	0.00%	-74.28%
Average Drawdown Average peak-to-trough decline	-38.47%	-15.59%	-22.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	39.39%	10.87%	+28.52%

Volatility

KBAB vs. TSMX - Volatility Comparison

The current volatility for KraneShares 2x Long BABA Daily ETF (KBAB) is 15.89%, while Direxion Daily TSM Bull 2X Shares (TSMX) has a volatility of 29.02%. This indicates that KBAB experiences smaller price fluctuations and is considered to be less risky than TSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBAB	TSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.89%	29.02%	-13.13%
Volatility (6M) Calculated over the trailing 6-month period	58.17%	58.40%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	87.97%	75.52%	+12.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	90.02%	82.10%	+7.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	90.02%	82.10%	+7.92%

KBAB vs. TSMX - Expense Ratio Comparison

KBAB has a 1.00% expense ratio, which is lower than TSMX's 1.05% expense ratio.

Dividends

KBAB vs. TSMX - Dividend Comparison

KBAB's dividend yield for the trailing twelve months is around 131.13%, more than TSMX's 3.96% yield.

Position	TTM	2025	2024
KBAB KraneShares 2x Long BABA Daily ETF	131.13%	59.88%	0.00%
TSMX Direxion Daily TSM Bull 2X Shares	3.96%	8.01%	0.53%

Frequently Asked Questions

Can I hold both KBAB and TSMX in my portfolio?

KBAB and TSMX have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBAB or TSMX?

TSMX has higher volatility (29.02%) compared to KBAB (15.89%). In terms of maximum drawdown, KBAB dropped -74.28% vs TSMX's -63.80%.

Which ETF is better, KBAB or TSMX?

On 1-year performance, TSMX leads with 295.18% vs -33.72% for KBAB. On fees, KBAB is cheaper at 1.00% per year. On volatility, KBAB has been the lower-risk option at 15.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBAB or TSMX?

Over the 1-year period, TSMX has performed better with a 295.18% return vs -33.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBAB or TSMX?

KBAB is cheaper with a 1.00% expense ratio, compared with 1.05% for TSMX.

Which ETF pays a higher dividend yield, KBAB or TSMX?

KBAB has the higher dividend yield at 131.13%, compared with 3.96% for TSMX.

What is the main difference between KBAB and TSMX?

They also come from different issuers: KraneShares and Direxion. Their fees differ too: 1.00% for KBAB and 1.05% for TSMX.

Which has better risk-adjusted returns?

TSMX currently has the higher Sharpe Ratio (3.95 vs -0.39), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.